Indiana Real Estate Practice Test Latest Update with Verified Solutions

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Indiana Real Estate Practice Test Latest Update with Verified Solutions A licensee is convicted of a crime that has bearing on the licensee's ability to competently practice. As a direct result of ... the conviction, the next step the Commission would likely take it is to: my answer: Suspend the license. ✔✔Hold a hearing on the matter. RATIONALE The criminal conviction is a criminal matter, the Commission would need to hold a hearing to see what if any sanction should be imposed. The only exception would be matters that pose a clear and immediate danger to the public or property, in which Summary Suspension may be appropriate. This situation is the only case in which a sanction would be imposed without a hearing being held first. Which of the following would be exempt from licensure when selling real property for consideration? my answer: Helping a friend sell a trailer park lot in exchange for use of the RV that sat there. ✔✔Those with the express consent of the Commission. RATIONALE The Commission has the authority to exempt anyone from licensure. Attorneys are only exempt when the sale is incidental to the practice of law such as selling a decedent's property in an estate. Being a broker, commercial or otherwise, from a state with reciprocity doesn't exempt one from the requirements, but it may lessen some requirements. When a sole proprietor managing broker dies, what happens to the business of the brokers associated with her? my answer: Brokers have 90 days to close pending sales, and active listings would be assigned to the new broker. ✔✔Listings without accepted offers would terminate upon the broker's death. RATIONALE Once this managing broker dies, only business already contracted for, like pending sales, may be continued. All other business dies with the broker. This is the main reason few brokerages with multiple brokers are set up this way. A corporate structure is usually preferred as the firm holds the licenses of associates and owns the listings, so if a managing broker dies the business doesn't die with that broker's death. To obtain a broker's license, a corporation must: CORRECT ANSWER: have a licensed managing broker who is an officer or employee with authority to bind the corporation. YOUR ANSWER: have a licensed managing broker and ensure each branch office is separately licensed. ✔✔RATIONALE As is the case in the licensing of all business structures, there is one primary broker answerable to the Commission for the activities of the licensees associated with them. There is never more than one managing broker. The broker company would have its' own license as well as the managing broker, and each associated broker. A licensee failed to renew his license by the expiration date. Which of the following would be an appropriate sanction by the Commission? CORRECT ANSWER: Nothing. YOUR ANSWER: License suspension, pending renewal. ✔✔RATIONALE It is not a violation to fail to renew a license. It is a violation to practice without or with an expired license. All branch offices of a broker company must: CORRECT ANSWER: be managed by a branch manag [Show More]

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